A $4 million water fund gathered through Kern County oil permits is on hold until companies “spud in”
Kern County has collected $4,076,000 from oil permits issued since the start of the year as part of its strategy to help disadvantaged communities with failing water systems. But it can only actually spend $9,592 of that, so far. That’s because, until oil companies begin the drilling process– known as spudding in – the $9,732 water fee charged as part of county permits doesn’t technically belong to the county, explained Planning Director Craig Murphy. “It’s held in trust while the oil company works to get its permits from CalGEM (California Geologic Energy Management), and then get all its equipment, financing and people in place,” Murphy said. “Once they notify the county that they’re activating the permit, that triggers the money to be transferred into the Disadvantaged Communities Water Relief Fund.”
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